Compute the marginal revenue when the price elasticity of demand is ?0.25.
A. ?0.33P, meaning that marginal revenue is negative and one-third of the price.
B. 3P, meaning marginal revenue is positive and 3 times greater than price.
C. ?3P, meaning marginal revenue is negative and 3 times greater than price.
D. ?0.25P, meaning that marginal revenue is negative and one-fourth of the price.
Answer: C
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